Final answer:
The term for the amount a patient pays before insurance coverage kicks in is called a deductible. It is a sort of cost-sharing that ensures insured parties are financially responsible up to a certain point, helping to mitigate excessive or unnecessary use of medical services.
Step-by-step explanation:
The term that refers to the amount of money that a patient must pay before an insurance company starts providing benefits is called a deductible. Insurance policies may include deductibles, copayments, or coinsurance. A deductible is the maximum out-of-pocket expense that must be paid by the policyholder before the insurance company pays the rest of the bill. This concept is important as it reduces moral hazard, ensuring that insured parties have a stake in the cost of their healthcare and, therefore, are more likely to make conscious decisions regarding their use of medical services.